Which of the Following Statements Is Correct Regarding Business Format

question 38

Multiple Choice

Which of the following statements is correct regarding business format franchises?

• A) Business format franchises are less popular than product and trademark franchises.
• B) A business format franchise can be very rigid and demanding.
• C) Agricultural machinery dealerships and soft-drink bottlers are well-known examples of business format franchises.
• D) Business format franchises are illegal in some states.
• E) The business format franchisor obtains the majority of its income from selling its products to its dealers at a markup.

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Definitions:

Market Anomalies

Instances where financial markets deviate from the expected or normal behavior, often leading to unexpected investment opportunities.

Advertising

The activity or profession of producing advertisements for commercial products or services, aiming to influence the buying behavior of consumers.

Inform Customers

The act of providing customers with necessary or relevant information about products, services, or changes in a timely and clear manner.

Planned Purchases

Buying decisions made after careful consideration and planning, often involving budgeting and research.